Tech sector cuts top 163,000 jobs in 2026, with AI cited in over half

Global technology companies have announced more than 163,000 layoffs since the start of 2026, with artificial intelligence cited as a driving factor in over 91,000 of those job cuts, according to a new report from TradingPlatforms, a financial research firm.madhyamamonline+1

The findings underscore a deepening pattern across the industry: companies are shedding workers at pace while redirecting resources toward AI infrastructure, and investors are largely rewarding them for it.

U.S. Companies Bear the Brunt

Nearly 89 percent of enterprise software layoffs this year have occurred at U.S.-based companies, with 11,792 of 13,308 global job cuts in the subsector recorded stateside. Enterprise software ranks as the fifth most affected tech subsector, behind cloud and SaaS (37,492 layoffs), e-commerce and marketplaces (22,633), IT services (16,756), and social media (13,592).mid-day+1

No company has cut deeper than Oracle ↗ 2.47%, which has eliminated roughly 21,000 roles through multiple rounds since January. Reuters reported in June that Oracle's total workforce shrank 13 percent in fiscal 2026, falling to about 141,000 from 162,000 a year earlier, with the company spending $1.84 billion on severance and restructuring costs. CNBC first reported a wave of thousands of cuts in late March as the company ramped spending on AI data center infrastructure.cnbc+1

Cisco ↗ 0.46% recorded the next-largest reduction among U.S. enterprise software firms with 4,000 positions eliminated, followed by Amdocs ↘ 0.96% with 2,900 and Autodesk ↗ 2.73% with 1,000. Cisco said roughly $1 billion in restructuring costs would fund its AI strategy, and its shares jumped 17 percent in after-hours trading following the announcement.madhyamamonline+1

AI as Rationale — and Reward

The report highlights a market dynamic in which layoffs framed around AI pivots are met with rising stock prices. Monday.com ↗ 6.35%, the Israeli workplace software maker, announced on July 22 that it would cut roughly 620 employees — about 20 percent of its workforce — to restructure around its "AI Work Platform". Co-founders Roy Mann and Eran Zinman called it "the most painful decision" in the company's history. ServiceNow ↗ 6.42% made cuts alongside its AI portfolio crossing $1 billion in annual contract value. Investors rewarded both: Monday.com shares rose 2.3 percent, while ServiceNow climbed roughly 9 percent over the following week.americanbazaaronline+3

Outside the United States, Israel, India, and Singapore have recorded the highest layoff totals, spanning AI startups, e-commerce platforms, and cybersecurity firms.madhyamamonline

A New Market Signal

Stanislava Savisheva, an analyst at TradingPlatforms, said the pattern carries a clear message for the industry.

> "Massive waves of layoffs are now seen as a sign of discipline, as long as the story is some kind of pivot toward AI. Fewer employees, framed the right way, now reads as a stronger business, with its priorities straight," Savisheva said.mid-day+1